Bolivia Cut Deeper Into Junk by Fitch on Falling Reserves
- South American nation rating downgraded to CCC from B-
- Low reserves pose risk to macroeconomic stability, Fitch says
A currency exchange house in La Paz, Bolivia.
Photographer: Marcelo Perez del Carpio/BloombergThis article is for subscribers only.
Bolivia was downgraded further into junk territory by Fitch Ratings, which said falling international reserves threaten the nation’s ability to service its debt.
Fitch cut the country to CCC from B- on Tuesday, after reserves dipped by $2.1 billion last year to just $1.7 billion, most of which is held in gold, the ratings company said. The landlocked South American nation has struggled to prop up its currency, the boliviano, which is pegged at a rate close to 7-per-dollar.